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Tractor Supply Company Message Board

  • bluecheese4u bluecheese4u Jan 30, 2013 9:41 PM Flag

    Tractor Supply Company Reports Fourth Quarter and Full Year 2012 Results

    Tractor Supply Company Reports Fourth Quarter and Full Year 2012 Results

    ~ Fourth Quarter Sales Increased to $1.29 Billion and Same-Store Sales Increased 4.7%
    ~~ Fourth Quarter Earnings per Share Increased 15.6% to $1.11
    ~~ Full Year Earnings per Share Increased 26.2% to $3.80

    BRENTWOOD, Tenn., Jan. 30, 2013 /PRNewswire/ -- Tractor Supply Company (NASDAQ: TSCO), the largest retail farm and ranch store chain in the United States, today announced financial results for its fourth fiscal quarter and fiscal year ended December 29, 2012. Additionally, the Company provided a current outlook for fiscal 2013.

    Fourth Quarter Results
    Net sales increased to $1.29 billion, or 3.7% over the prior year's 14-week period (10.8% adjusted for the extra sales week in the prior year's fourth quarter as part of the Company's 53-week calendar in fiscal 2011). Same-store sales increased 4.7% compared to a strong 7.6% increase in the prior-year period (7.1% in the prior-year period adjusted for the one-week calendar shift in the prior year due to the Company's 53-week calendar in fiscal 2011). The same-store sales increase was driven primarily by continued strong results in key consumable, usable and edible (C.U.E.) products, principally animal- and pet-related merchandise. Same-store sales for the four quarters and full year of fiscal 2011, adjusted for the one-week calendar shift, are presented in the attached table of Selected Financial and Operating Information.

    As a percent of sales, gross margin improved to 33.0% from 32.5% in the prior year's fourth quarter. Gross margin dollars increased to $424.6 million from $403.2 million in the prior year's 14-week fourth quarter. Gross margin rate continues to benefit from key margin-driving initiatives, including strategic sourcing, inventory and markdown management and price optimization. The higher gross margin rate in the fourth quarter of 2012 also reflects, in part, the impact in 2011 of a one-time charge related to the discontinuation of a product line from several hundred stores. These increases in gross margin rate were partially offset by the continued mix shift to lower-margin, freight-intensive C.U.E. products.

    Selling, general and administrative expenses, including depreciation and amortization, improved to 23.3% of sales compared to 23.5% of sales in the prior year's fourth quarter. This improvement was achieved despite the leverage gained in 2011 from the extra sales week. The improvement as a percent of sales was primarily attributable to expense control related to store operating costs and lower year-over-year incentive compensation expense. The reduction as a percent of sales also reflects, in part, the impact in 2011 of a one-time charge to write down certain e-commerce assets.

    Net income for the quarter was $79.5 million, or $1.11 per diluted share, compared to net income of $70.5 million, or $0.96 per diluted share, in the fourth quarter of the prior year. As stated in the prior year, the Company estimates that the 53rd week in fiscal 2011 represented a benefit of approximately $0.09 per diluted share in the prior year's fourth quarter results.

    The Company opened 25 new stores in the fourth quarter of 2012 compared to 31 new store openings in the prior year's fourth quarter.

    Greg Sandfort, President and Chief Executive Officer, stated, "Our fourth quarter performance demonstrates the underlying strength we have built in our business, while we continue to drive improved profitability through our strategic initiatives. Our core C.U.E. categories again posted solid increases above last year in both sales and units, and our ability to plan, prepare, execute and react quickly to the trends we are seeing in our business allowed us to deliver our 19th consecutive quarter of year-over-year transaction count increases. Our team executed exceptionally well, delivering a strong same-store sales gain of 4.7% on top of last year's strong 7.6% comp increase, managing through less than ideal weather conditions for sales of cold weather products and despite less benefit from inflation than last year. We are also delighted with our ability to once again generate double-digit EPS growth during the fourth quarter on top of a strong double-digit increase last year."

    Full Year Results
    Net sales increased to $4.66 billion, or 10.2% over the prior year's 53-week period (11.6% adjusted for the extra sales week in fiscal 2011 as part of the Company's 53-week calendar). Same-store sales increased 5.3% compared to an 8.2% increase in fiscal 2011 (8.3% in the prior-year period adjusted for the one-week calendar shift in the prior year due to the Company's 53-week calendar in fiscal 2011). As a percent of sales, gross margin improved to 33.6% from 33.2% in the prior year. Gross margin dollars increased to $1.57 billion from $1.41 billion in the prior year's 53-week period.

    Selling, general and administrative expenses, including depreciation and amortization, improved to 24.2% of sales compared to 24.9% of sales in fiscal 2011.

    For fiscal 2012, net income was $276.5 million, or $3.80 per diluted share, compared to net income of $222.7 million, or $3.01 per diluted share, for fiscal 2011. As stated in the prior year, the Company estimates that the 53rd week in fiscal 2011 represented a benefit of approximately $0.09 per diluted share.

    The Company opened 93 new stores and closed two stores during fiscal 2012 compared to 85 new store openings and one store closure during fiscal 2011.

    Fiscal 2013 Outlook
    The Company anticipates net sales for fiscal 2013 will range between $5.07 billion and $5.17 billion, with same-store sales expected to increase 3% to 5%. The Company projects fiscal 2013 full year net income to range from $4.32 to $4.40 per diluted share. This projection includes estimated costs of $0.06 to $0.07 per diluted share associated with the relocation of its Southeast distribution center and its corporate data center. For the full year, the Company expects capital expenditures to range between $240 million and $250 million including spending to support 100 to 105 new store openings and construction of the Company's Southeast distribution center expected to open in 2013 and new Store Support Center expected to open in 2014.

    Mr. Sandfort concluded, "The strength and flexibility of Tractor Supply Company's business model is exemplified by our ability to manage through a wide array of variables. Today, we are agile and able to respond more quickly to our customers' changing needs, creating opportunities in our business. As we manage the controllables, we will continue to test and improve our assortments and the in-store experience. We continue to focus on new product innovation and expansion of existing categories, while providing our customers with compelling values every day. We have been rewarded in these efforts with increasing customer loyalty and growing market share. Looking ahead, we believe our ability to better anticipate and meet our customers' needs will continue to provide sales momentum for Tractor Supply."

    tractorsupplyDOTcom/InvestorRelationView?storeId=10551&catalogId=10001

 
TSCO
60.19-0.86(-1.41%)Sep 15 3:59 PMEDT

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